WORLD TRADE  
ORGANIZATION  G/SCM/N/123/EEC/Add.2 
26 August 2005 
 
 (05-3587) 
Committee on Subsidies and 
Countervailing Measures Original:   English/ 
 French 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI.1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
 
  The following addendum to the notification of  the European Community relates to subsidy 
programmes of Belgium
. 
 
_______________ 
 G/SCM/N/123/EEC/Add.2 
Page 2  
 
 BELGIUM  
 
ANNUAL REPORT 2003 
 
TABLE OF CONTENTS 
Page  
1. BELGIUM – FEDERAL STATE - ANNUAL REPORT 2003 .............................................. 3 
2. BELGIUM – BRUSSELS - CAPITAL REGION - ANNUAL REPORT 2003..................... 6 
3. BELGIUM – WALLOON REGION  - ANNUAL REPORT 2003 ....................................... 13 
4. BELGIUM – FLEMISH REGION  - ANNUAL REPORT 2003 .......................................... 17 
 
 
ANNUAL REPORT 2004 
 
TABLE OF CONTENTS 
Page  
 
1. BELGIUM – FEDERAL STATE - ANNUAL REPORT 2004 ............................................ 32 
2. BELGIUM – BRUSSELS - CAPITAL REGION - ANNUAL REPORT 2004................... 35 
3. BELGIUM – WALLOON REGION  - ANNUAL REPORT 2004 ....................................... 43 
4. BELGIUM – FLEMISH REGION  - ANNUAL REPORT 2004 .......................................... 47 
 
 
 
Please note: 1 EURO = 40,3399 BEF (BELGIUM FRANCS) 
 
   
 
INTRODUCTION
 
 
 Following recent reforms in Belgium, the greater part of investment policy is now 
constitutionally the responsibility of  the Flemish, Walloon and Brussels Regions.  Consequently, the 
regions are also responsible for applying legisla tion on economic growth and aiding SMEs in their 
respective areas.  In the Belgian notification of s ubsidies, the evaluation of whether the subsidy is 
"general" or "specific" therefore relates to  the regulations in force in each region. 
  G/SCM/N/123/EEC/Add.2 
 Page 3 
 
 
  
 
1.       BELGIUM – FEDERAL STATE  
ANNUAL REPORT 2003 
 
 
 
1.1 SPECIAL TAXATION SCHEMES 
 
1.1.1 RESTRUCTURING COMPANIES, LAW OF 31 JULY 1984, ROYAL DECREE OF 
3 OCTOBER 1988, LAW OF 22 DECEMBER 1989 (ARTICLE 303), LAW OF 
28 DECEMBER 1990 (ARTICLE 18) 
 (a) Form of the subsidy
 
  Restructuring companies originally benefited from the following, inter alia : 
 
 - Exemption from duty on capital inflow;   - exemption from corporate tax for 10 consecutiv e financial years, restricted to the part 
of the dividends that did not exceed  13 per cent of the paid-up capital. 
 
(b) Total amount in 2003
 
  Exemption from corporate tax: (NCG
*) EUR 51.83 million. 
 (c) Policy objective
 
 
 The tax scheme applies to firms set up specially to carry out a conversion project under a "conversion contract" and established in one of th e zones defined for this purpose in the Royal 
Decree.  (d) Duration
 
 
 This scheme has not been availabl e since 22 July 1990, nevertheless: 
  - For firms set up before 1 January 1990, ex emption from corporate tax ends during the 
fiscal year 2007; 
 
 - for firms set up between 1 January and 22 July 1990, exemption from corporate tax 
ends during the fiscal year 2002; 
  - no exemption from corporate tax is granted to firms set up after 22 July 1990. 
                                                     
 
* NCG = Net cost for the Government in Euros. G/SCM/N/123/EEC/Add.2 
Page 4  
 
 1.2 TAX MEASURES TO PROMOTE INVESTMENT 
 
 DEDUCTION FOR INVESTMENT, ARTICLES 68 TO 77 CIR92 (and 211, 212 and 215) 
 (a) Form of the subsidy
 
 
 Deduction for investment allows a share of th e amount of investment made during the taxable 
period to be deducted from the basi c taxable amount.  Firms or natu ral persons who declare gains or 
profits are eligible.  
(b) Total amount in 2003
 
  NCG Deduction (NCG
*):  EUR 192.10 million. 
 (c) Policy objective
 
 
 The objective is currently to facilitate inv estment in the research and development and 
energy-saving sectors, as well as in SMEs.  (d) Duration
 
 
 The deduction for investment has been "deactivated" for investment made after 
27 March 1992.  This means that the rate is now  zero, except for the sectors mentioned under "Policy 
objective".  (e) Rules and conditions
 
 
 The deduction may apply to investment in tangi ble or intangible fixed assets used in Belgium 
to exercise a professional activity.   The redeemable amount determines  the basis for calculation and the basic rate is linked to the 
inflation rate.  The basic rate may not exceed 10 per cent or be less than 3 per cent.  It is, however, 
increased for investment in research and development,  investment in innovative firms and investment 
in energy saving.  
1.3 AID FOR RESEARCH AND DEVELOPMENT 
 
• Special Law of 8 August 1980, amended on 16 July 1993; 
 
• Cooperation Agreement of 5 April 1995 be tween the Federal State and the Regions 
on the public financing of joint centres.  Th is Agreement was terminated with effect 
from 1 January 2002. 
 (a) Form of the subsidy
 
 
 Non-repayable subsidy.  
                                                     
 
* NCG = Net cost for the Government in Euros.  G/SCM/N/123/EEC/Add.2 
 Page 5 
 
 
 (b) Total amount of the subsidies granted in 2003  
  (b1) Projects for which the Federal State is responsible:    Total commitments: EUR 2,851,000. 
 
(c) Purpose of the subsidy
 
  Precompetitive research for industrial purposes.  
(d) Duration
 
  Subsidies are for a period of one year.  G/SCM/N/123/EEC/Add.2 
Page 6  
 
  
 
2. BELGIUM – BRUSSELS – CAPITAL REGION 
ANNUAL REPORT 2003 
 
 
 
2.1 AID FOR ECONOMIC GROWTH  
 
2.1.1 ORDER OF 1 JULY 1993 ON THE PR OMOTION OF ECONOMIC  GROWTH IN THE 
BRUSSELS-CAPITAL REGION 
 
(a) Form of the subsidy  
  Financial aid is granted in the form of a non-recoverable investment premium.  (b) Total amount of the subsidies granted in 2003
 
 
Type of 
Investment  Number of 
programmes  Subsidized 
amount 
(in EUR)  Amount of 
premiums 
(in EUR)  Average rate of 
aid 
(in %)  
General investment 35 11,699,813.06 553,340.00 4,73% 
    
Specific investment     
    
- Rational energy use 11 701,835.85 133,199.00 19.01 
- Rational water use 2 83,729.89 16,745.00 20.00 
- Rational use of raw materials 4 970,877.01 194,175.00 20.00 
- Environmental protection 32 10,577,851.15 2,084,538.0 19.71 
- Adaptation to European 
 Standards 14 3,326,789.23 503,862.00 15.15 
- Change to the Euro 1 61,970.00 12,394.00 20.00 
 64 15,722,053.13 2,944,913.00 18.73 
TOTAL (general and specific) 99 27,422,866.19 3,498,253.00 12.76 
- Use of consultancy services 
- Use of training services 
- Use of mentoring services 135 
72 
40 3,169,571.41
265,310.72
-1,583,154.28 
128,367.05 
25,000.00 49.97 
48.92 
- 
TOTAL (Consultancy, training 
and mentoring services) 247 3,434,882.13 1,736,521.33 49.83 
OVERALL TOTAL 346 30,857,748.32 5,234,774.33 31.30 
 
(c) Policy objective and/or purpose of the subsidy  
  The policy objective of the Order of 1 July 1993 is to promote economic growth by granting 
financial aid to industrial enterp rises in Brussels if they invest. 
  G/SCM/N/123/EEC/Add.2 
 Page 7 
 
 
  The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment:   - For all enterprises, "specific" investment for the purpose of:  
• Saving energy, water or raw materials; 
 
• protecting the environment; 
 
• adapting to European standards; 
 
 - for medium-sized enterprises (maximum 250 employees and turnover of 
EUR 40 million), "general" investment; 
 
 - for small and medium-sized enterprises (SMEs), "use of consultancy, training and 
mentoring services". 
 (d) Duration of the subsidy and/or an y other time-limits attached to it
 
 
 Depending on the amount of the premium and the duration of the investment programme, the premium is paid in one, two or three annual tranches.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 With regard to the role played by the fi nancial incentives provided in the legislation on 
economic growth, it should be noted that the amount  of EUR 27,422,866.19 of subsidized investment 
under the Order of 1 July 1993 and the amount of EUR 115,465,092.44 of subsidized investment 
under the Law of 4 August 1978 only represent ar ound 12 per cent of the investment made by 
enterprises situated in the Brussels-Capital Regi on and working in the manufacturing, building and 
trade sectors.∗ 
 2.1.2 ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978  
(a) Form of the subsidy
 
  The financial aid is granted in the form of an interest subsidy or an investment premium 
depending on the method of financing of the investment programme.  
(b) Total amount of aid granted in 2003
 
  Interest subsidy
 (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
403 72,162,836.36 3,968,956 5.5% 
 
                                                      
 ∗ Source:  VAT declarations for 2002 = EUR 1,181.7 million. G/SCM/N/123/EEC/Add.2 
Page 8  
 
  Investment premium
 (in EUR) 
 
Number of 
decisions taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
493 43,302,256.08 3,550,785.00 8.2% 
 (c) Policy objective and/or purpose of the subsidy
 
 
 The aim of the Law of 4 August 1978 is to promote investment by small enterprises.  The amount of the aid depends on the enterprise's field of activity and how long it has existed. 
  According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
 
 Fields of activity are divided into two groups:   - Group A: Industrial and non-industrial enterprises or enterprises in the building or 
finishing sector; 
 
 - Group B: trade and services enterprises.   Pursuant to Directive B7, two types of investment are envisaged:   - Type 1 ( START-UP ): Investment by an enterprise that has existed for less than 
12 months; 
  - Type 2 ( NORMAL ): investment by an enterprise that has existed for over 
12 months. 
 
 Aid is given in the form of: 
  - An interest subsidy where the investment is financed by a fixed-term credit;   - an investment premium where investment is self-financed. 
 
 Two types of tax concession may also be granted:   - The possibility of doubling straight-line depreciation during three successive financial 
years; 
 
 - exemption from tax on income from immovable assets. 
 (d) Duration of the interest subsidy and the capital premium
 
  In accordance with the criteria set out in subhead ing (c), the interest subsidy may be given for 
a period ranging from three to five years and the investment premium is paid in a lump sum. 
  The duration of the accelerated depreciation is fixed at three years.   The duration of exemption from tax on income from immovable assets is exactly the same as 
that for the interest subsidy. 
  G/SCM/N/123/EEC/Add.2 
 Page 9 
 
 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  - In terms of budgetary implications, 60 pe r cent of investment su bsidies was allocated 
to dossiers submitted by industrial and non-in dustrial enterprises;  40 per cent was 
allocated to dossiers submitted by  business or services enterprises. 
 
2.2 AID FOR RESEARCH AND DEVELOPMENT 
 
2.2.1 SUBSIDIES FOR BASIC INDUSTRIAL RESEARCH  
(a) Form of the subsidy
 
  Non-repayable subsidy.  (b) Total amount of aid granted in 2003
 
 
 Commitments: 
 EUR 8,851,390 
 or 19 new projects run by 18 enterprises, including 11 new beneficiaries (no university or 
research centre projects).  
 
 Disbursements : 
 EUR 5,835,635.93  (c) Policy objective and/or purpose of the subsidy
 
 
 To strengthen basic industrial research by regional enterprises. 
 (d) Duration of the subsidy
 
 
 Two years per subsidy. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Basic industrial research and, as such, not quantifiable in the medium or short term.  2.2.2 PRECOMPETITIVE DEVELOPM ENT (e.g. prototype advances) 
 
(a) Form of the subsidy
 
  Interest-free loans repayable upon marketing.  (b) Total amount of aid granted in 2003
 
 
 Commitments: 
 EUR 1,023,000  or 2 new projects run by 2 enterprises, including 1 new beneficiary (no university or research 
centre projects).  
 
 Disbursements: 
 EUR 2,685,611.86  
 G/SCM/N/123/EEC/Add.2 
Page 10  
 
 (c) Policy objective and/or purpose of the subsidy
 
  To promote regional development through the creation of new products, processes or 
services.  
(d) Duration of the subsidy
 
  One to five years.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term.  2.2.3 PRECOMPETITIVE DEVELOPM ENT (e.g. prototype advances)  
 
(a) Form of the subsidy
 
  Non-repayable subsidy.  (b) Total amount of aid granted in 2003
 
 
 Commitments: 
 EUR 2,447,447  or 11 new projects run by 10 enterprises, in cluding 9 new beneficiaries (no university or 
research centre projects).  
 
 Disbursements: 
 EUR 951,535.80  
 (c) Policy objective and/or purpose of the subsidy
 
 
 To promote regional development through the creation of new products, processes or 
services.  (d) Duration of the subsidy
 
 
 One to five years. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term. 
 
2.2.4 EUROPEAN PROGRAMMES  
 (a) Form of the subsidy
 
 
 Optional non-repayable subsidy. 
  G/SCM/N/123/EEC/Add.2 
 Page 11 
 
 
 (b) Total amount of aid granted in 2003  
 
 Commitments:  
 EUR 211,000 
  Disbursements: 
 EUR 234,596.04  
(c) Policy objective and/or purpose of the subsidy
 
 
 Joint financing of EC subsidies for European  research programmes in universities or research 
centres with no commercial activities.  (d) Duration of the subsidy
 
 
 Two to three years per dossier. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Precompetitive or socio-economic research and,  as such, not quantifiable in the medium or 
short term. 
 
2.3 AID FOR PROMOTION OF FOREIGN TRADE 
 
2.3.1 ORDER OF 13 JANUARY 1994 ON THE PROMOTION OF FOREIGN TRADE  
(a) Form of the subsidy
 
 
 (A) Subsidies for: 
 
• Participation in trade fairs abroad and in Belgium; 
 
• the elaboration of information documents to promote exports; 
 
• participation in training programmes; 
 
• collaboration of foreign trade experts. 
 
 (B) Subsidies and interest-free loans for: 
 
• Market surveys and market presen ce outside the European Union; 
 
• participation in tenders for markets outside the European Union. 
 G/SCM/N/123/EEC/Add.2 
Page 12  
 
 (b) Total amount of commitments in 2003 (in EUR)
 
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies 246 (*)550,000,00
Subsidies for collaboration of experts 10 (*)
Training subsidies 0 (*)
Documentation subsidies 84 527,080.13
Market survey subsidies/loans 35 101,355.00
Subsidies/loans for tenders 3 4,576.66
TOTAL  378 1,183,011.70
 (*) Collective commitment (non- differentiated appropriation) 
 
(c) Policy objective and/or purpose of the subsidy  
  Support for trade survey efforts by small and medium-sized enterprises in the Region. 
 
(d) Duration of the subsidy
 
  Ad hoc aid.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.  G/SCM/N/123/EEC/Add.2 
 Page 13 
 
 
  
 
3.       BELGIUM – WALLOON REGION 
ANNUAL REPORT 2003 
 
 
 
3.1 AID TO SMEs 
 
3.1.1 LAW OF 4 AUGUST 1978 ON ECONOMIC ADJUSTMENT, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 21 MAY 1999 
 
(a) Form of the subsidy  
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.   Accelerated depreciation over a maximum of three successive taxable periods for investment in tangible fixed assets.  Exemption from the graduated registration duty on capital inflow. 
 
(b) 2003 budget
 
  The budget amounted to EUR 105.224 million.   The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 
(c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive 
contribution to achieving these aims.   In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an enterprise with a payroll not exceeding 250 people 
and a turnover not exceeding EUR 40 million or an annual balance sheet total not exceeding 
EUR 27 million.   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors. 
 
 The scheme applies in the whole of the Wall oon Region for all enterprises meeting the SME 
criteria.   The scheme is therefore not specific, except that it only applies to SMEs. 
 G/SCM/N/123/EEC/Add.2 
Page 14  
 
 (d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  3.2 AID TO DISADVANTAGED REGIONS 
 
3.2.1 LAW OF 30 DECEMBER 1970 ON ECONOMIC GROWTH, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 21 MAY 1999 
 
(a) Form of the subsidy
 
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premium are those in tangible and intangible fixed assets. 
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.   Accelerated depreciation over a maximum of three successive taxable periods for investment in tangible fixed assets.  
 Exemption from the graduated registration duty on capital inflow. 
 (b) 2003 budget
 
  The budget amounted to EUR 83.07 million. 
 
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 (c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive contribution to achieving these aims.  
 In practical terms, the premiums are awarded in order to encourage investment by large 
enterprises situated in disadvantaged  zones, called development zones. 
  Development zones are determined by the Co mmission of the European Union following a 
proposal by a Member State.  In defining the sc ope of such zones, the European Commission uses a 
method defined in 1988 in the "C oordination principles for regional aid".  This method is essentially 
based on an analysis of objective criteria, in cluding per capita GDP and the unemployment rate. 
  The scheme is therefore not specific, except th at it applies only to enterprises located in 
disadvantaged areas which, as explained above, ar e defined on the basis of easily identifiable and 
quantifiable objective criteria. 
 
(d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  G/SCM/N/123/EEC/Add.2 
 Page 15 
 
 
  
3.3 RESEARCH AND TECHNOLOGY AID 
 
3.3.1 DECREE OF 5 JULY 1990 ON AID AND ACTION BY THE WALLOON REGION TO 
PROMOTE RESEARCH AND TECHNOLOGY, AND THE IMPLEMENTING ORDERS 
THEREOF 
  - Walloon Government Decree of 29 September 1994 defining a "small or medium-
sized enterprise" with a view to granti ng aid and taking action to promote research 
and technology;  
 
 - Walloon Government Decree of 29 Septem ber 1994 on aid and action to promote 
research and technology. 
 
(a) Form of the aid
 
 
 A. Subsidies granted to enterprises for basic industrial research work.   B. Repayable advances to enterprises for work related to applied research and 
development. 
 
 C. Subsidies granted to small and medium-s ized enterprises for preparatory or associated 
studies for research or development projects. 
 (b) 2003 budget
 
 
 The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project.   The annual global budget for the types of aid set out in point (a) are EUR 26.24 million, EUR 52.51 million and EUR 4.52 million respectively.  
(c) Policy objective
 
  This horizontal aid is designed to promot e research and development activities and to 
encourage technological innovation.  It is available to all sectors of economic activity.  
 The types of aid defined under A and B above are available to enterprises of any size.  The 
aid mentioned under C is restricted to small and medium-sized enterprises.   The aid is not awarded automatically, but is dependent upon an assessment by the administrative services of the quality of the project.  
 Where aid consists of a repayable advance, the beneficiary enterprise pays it back in the form 
of regular payments if it has decided to exploit the results of the research industrially or commercially. 
 (d) Duration
 
 
 The aid scheme may be applied indefinitely.  The budget is adopted annually by the Walloon 
Parliament.   The duration of aid granted corresponds to th e duration of the research work or the study 
financed. G/SCM/N/123/EEC/Add.2 
Page 16  
 
  
(e) Statistical data
 
  The aid has an impact on trade because it may lead to the marketing of innovative products, processes or services.  The criteria for estimating this  impact are so numerous and complex that it is 
extremely difficult to apply statistical tools to them. 
  G/SCM/N/123/EEC/Add.2 
 Page 17 
 
 
  
 
4.      BELGIUM – FLEMISH REGION 
ANNUAL REPORT 2003 
 
 
 
4.1 AID FOR ECONOMICAL EXPANSION 
4.1.1 LAW OF 30 DECEMBER 1970 REGARDING ECONOMICAL EXPANSION 
 (a) Form of aid
 
 
 - Interest premium (for investments financed through credit or leasing) 
  - Capital premium (for investments financed through own resources of the enterprise)   - Fiscal advantages 
 
 - Guarantees by the Flemish Region   - Credits refundable without interest (abolished).  (b) Amount of aid in 2003
 
 
 - Interest and Capital premiu ms : EUR 16,896,734.17 budgeted 
  - Fiscal advantages:  
• exoneration of the immovable advanced tax payment (précompte 
immobilier):  percentage of a total amount of EUR 97,062,139.17 
investments 
 
• accelerated amortisation:  EUR 2,908,522.50 (amount of investments) 
 
• exoneration of the proportional right re garding the contribution of capital:  
EUR 0 (abolished) 
 
 - Guaranties: EUR 0 (amount of investments)     EUR 2,090,000 (amount of the net losses)   - Credit refundable without in terest:  EUR 0 (abolished) 
 
(c) Objectives of the aid
 
  The aid is granted to promote the economical ex pansion of large and middle sized enterprises in 
regional aid areas within the Flemis h Region for investments that lead to  a creation of extra employment. 
 
 The scheme contains certain lim itations regarding the applicable se ctors, investments and ways of 
financing. G/SCM/N/123/EEC/Add.2 
Page 18  
 
  
(d) Time frame
 
  The application of the law of 30 December 1970 will come to an end on 31 December 2003
.  
Only hanging cases will still be treated according to the conditions of this law. 
 
(e) Statistics  
  There are no statistics available which could contribute to the evaluation of the effects of this aid scheme on the WTO commerce and trade. 
 
(f) Legal Base
 
  Law of 30 December 1970 regard ing economical expansion. 
 
(g) Rules and conditions
 
  The scheme applies to large and middle sized enterprises, with an activity in the industrial, commercial or artisan field, as well as in services and the tourist sector.   Only investments that lead to a creation of extra employment in assisted area’s within the Flemish 
Region are envisaged. 
  The Flemish authorities use the SME definition as recommended by the European Commission. 
  Enterprises can receive following aid: 
 
 Interest and capital premiums are accorded for investments which create extra employment, have 
a strategic effect for the Region or a favourable effect for the environment. 
  Fiscal advantages:  
• exoneration of the immovable advanced ta x payment during maximum 5 years aims 
at investments in immovable goods by nature or by destination, and which are comprised in the land register. 
• accelerated amortisation is available for ente rprises situated in the assisted areas in 
Limburg.  All the eligible investments which are amortised linearly are admissible.  The advantage implies the possibility of us ing an annual amortisation, which equals 
twice the amount of a normal linear amortisation during 3 subsequent years. 
 
• the exoneration of the proportional right re garding the contribution of capital was 
given to large or middle sized enterprises having a corporate existence, for investments in regional aid zones.  This type  of aid was abolished by a decision of the 
Flemish government of 17 July 2000. 
 
 The guarantees of the Flemish authorities intend to facilitate the grant of professional credits to enterprises which invest in economical expansion.  The guarantee must be considered next to the securities, financed by the enterprise itself, but can not support the totality of the risks.  A part of the risk has to be supported by the credit institution and th e enterprise itself, which both pay a contribution 
depending on the amount and time frame of the guarantee. 
  G/SCM/N/123/EEC/Add.2 
 Page 19 
 
 
  Soft aid consists of a refundable credit without interest for training projects, advise to enterprises 
or studies regarding (possible future) investments.  This kind of aid was also abolished.  4.1.2 LAW OF 4 AUGUST 1978 REGARDI NG THE ECONOMICAL REORIENTATION 
 
(a) Form of the aid
 
  - Interest premium (for investments financed through credit or leasing)   - Capital premium (for investments financed through own resources of the enterprise) 
 
 - Fiscal advantages, exoneration of the immovable advanced tax payment 
 (b) Amount of aid in 2003
 
 
 - Interest and Capital premiu ms:  EUR 56.301.284,17 budgeted 
  - Exoneration of the immovable advanced ta x payment:  percentage of a total amount 
of EUR 551.495.960,79 investments 
 (c) Objectives of the aid
 
 
 The aid is granted to promote the economical expa nsion of small, independent enterprises within 
the Flemish Region.   The scheme contains certain lim itations regarding the applicable se ctors, investments and ways of 
financing. 
 (d) Time frame
 
  The application of the law of 4 August 1978 will come to an end on 31 December 2003
.  Only 
hanging cases will still be treated according to the conditions of this law. 
 
(e) Statistics  
  There are no statistics available which could contribute to the evaluation of the effects of this aid scheme on the WTO commerce and trade. 
 
(f) Legal Base
 
  Law of 4 August 1978 regarding the economical reorientation. 
 (g) Rules and conditions
 
 
 The scheme applies to small enterprises, with an activity in the industrial, commercial or artisan field, as well as in services, the tourist sector and the liberal or independent professions which have a clear link with the economical activitie s of the small enterprises. 
 
 The Flemish authorities use the SME definition as recommended by the European Commission. 
  The amount of the interest and capital premiums is calculated according to the activity of the 
enterprise, the first establishment of the enterprise in  Flanders, the creation of extra employment, strategic 
effect for the Region or favourable effect for the environment. G/SCM/N/123/EEC/Add.2 
Page 20  
 
  
 Enterprises which benefit from an interest or capital premium can receive an exoneration of the 
immovable advanced tax payment during maximum 5 years for investments in immovable goods by 
nature or by destination, and whic h are comprised in the land register. 
 
4.1.3 DECREE OF 15 DECEMBER 1993 RE GARDING THE ECONOMICAL EXPANSION IN 
THE FLEMISH REGION 
 (a) Form of aid
 
 
 - Interest premium (for investments financed through credit or leasing) 
  - Fiscal advantages, exoneration of the immovable advanced tax payment 
  - Guarantees by the Flemish Region 
 
 - Credits refundable without interest (abolished)  (b) Amount of aid in 2003
 
  - Interest premium:  EUR 37,837,531.86 budgeted 
 
 - Exoneration of the immovabl e advanced tax payment: percen tage of a total amount of 
EUR 242.390.376,57 investments 
  - Guaranties: EUR 0 (amount of investments) 
    EUR 700,000 (amount of the net losses) 
  - Credit refundable without interest:  EUR 0 (abolished)  
 (c) Objectives of the aid
 
 
 The aid is granted to promote the economi cal expansion of large and medium sized 
enterprises within the Flemish Region.   The scheme contains certain limitations regard ing the applicable sectors, investments and 
ways of financing. 
 
(d) Time frame
 
  The application of the decree of 15 December 1993 will come to an end on 
31 December 2003  for all aid to medium sized enterprises. 
 
 Aid to large enterprises for environmental inv estments on the basis of the decree of 1993 will 
come to an end in October 2004 .  Only hanging cases will still be treated according to the conditions 
of this law.  (e) Statistics
 
 
 There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on the WTO commerce and trade.   G/SCM/N/123/EEC/Add.2 
 Page 21 
 
 
 (f) Legal Base  
  Decree of 15 December 1993 regarding the ec onomical expansion in the Flemish Region. 
 (g) Rules and conditions
 
 
 The scheme applies to large and middle sized en terprises, with an activity in the industrial, 
commercial or artisan field, as well as in services and the tourist sector.   It applies only to investments outside the assist ed areas within the Flemish Region, or in the 
assisted areas provided that the investments do no t lead to the creation of extra employment. 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission.  
 Interest premiums for medium sized enterp rises are accorded for investments which create 
extra employment, have a strategic effect for the Re gion or a favourable effect for the environment. 
  The exoneration of the immovable advanced tax payment during maximum 5 years aims at investments in immovable goods by nature or by destination, and which are comprised in the land 
register. 
 
 The guarantees of the Flemish authorities intend to facilitate the grant of professional credits 
to enterprises which invest in economical expansion.   The guarantee must be considered next to the 
securities, financed by the enterprise itself, but can not  support the totality of the risks.  A part of the 
risk has to be supported by the credit institu tion and the enterprise itself, which both pay a 
contribution depending on the amount  and time frame of the guarantee. 
  Soft aid consists of a refundable credit without interest for training projects, advise to enterprises or studies regarding (possible future) investments.   Aid for large enterprises is limited to ecologi cal investments and are implemented through a 
investment premium, soft aid, an exoneration of the immovable advanced tax payment or a guarantee 
by the Flemish Region.  4.1.4 DECREE OF 31 JANUARY 2003 REGARDI NG THE ECONOMICAL SUPPORT POLICY 
 
 The decree of 31 January 2003 is the new Flemish legal bases for most aid schemes and 
replaces the old economical expansion laws of 30 December 1970 and 4 August 1978 and the decree 
of 15 December 1993.   On the basis of this decree, new aid schemes will be implemented.  
A. DECISION OF THE FL EMISH GOVERNMENT OF 10 OC TOBER 2003 REGARDING THE 
GRANTING OF AID TO SMALL AND MEDIUM SIZED ENTERPRISES FOR INVESTMENTS IN THE FLEMISH REGION (GROWTH PREMIUM) 
 (a) Form of aid
 
 
 This scheme is aimed at investment aid, as defined by the EU Commission in its SME Regulation No. 70/2001 of 12 January 2001, a nd was notified to the Commission according to 
the provisions of that Regulation.  G/SCM/N/123/EEC/Add.2 
Page 22  
 
 (b) Amount of aid in 2003
 
  The first call was launched on 18 November 2003 and ended on 31 March 2004.  The budget 
was 100 per cent controllable as the call system s guarantees a "closed envelope".  The budget 
foreseen for this call was EUR 30.000.000, which will be paid starting from 2004. 
 
 There were no strategic projects approved by the Flemish government in 2003.  
 (c) Objectives of the aid
 
 
 The Flemish government agrees with to overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of investments by SMEs is one of the 
best ways of ensuring that.  The aid sch eme aims at promoting entrepreneurship. 
 (d) Time frame
 
 
 The decision of the Flemish government of 10 Oc tober 2003 is principally unlimited in time.  
However, as the scheme is based upon the EU regulation No. 70/2001, wh ich is only valid until 
31 December 2006, the scheme will have to be reinforced in 2007, when a new or revised 
EU regulation comes into force.  
(e) Statistics
 
   As the scheme is very recent, there are no statistics available which could contribute to the evaluation of the effects of this  aid scheme on the WTO commerce and trade. 
 
(f) Legal Base
 
  The decree of 31 January 2003 regarding the economical support policy and its implementing 
decisions of the Flemish government (e.g. decision of 10 October 2003).  (g) Rules and conditions
 
 
 The scheme is developed for aid to SMEs, and w ill have effect on the whole of the territory of 
the Flemish Region.  In the assisted areas the maximu m percentage of possible aid to be given to the 
enterprises shall be higher.  
 The Flemish government adopted a double standard for investment aid to SMEs, depending 
on the amount of the investments envisaged by the enterprises.   If the eligible investments are below EUR 8 milli on, a so called "call" system is used.  All 
companies that wish to receive aid, can participat e in a concourse and file a dossier, which will be 
assessed on basis of some pre-established criteria.  This  system is rather easy going, as the best ranked 
projects are granted the aid, as far as the budget allows  it. Such calls can be organised every 3 months. 
  Investment programmes between EUR 8 million and EUR 25 million (the so called "strategic 
programmes") will be decided upon by Decision of th e Flemish Government.  This work method is 
necessary to allow the Minister of economic affair s some space to negotiate with the companies 
interested in investing in Flanders. 
  The enterprises qualifying for aid will receive a per centage of their eligible investment costs. 
  G/SCM/N/123/EEC/Add.2 
 Page 23 
 
 
 4.2 SOCIAL INTEGRATION ENTERPRISES (SOCIAL ECONOMY) 
 
 Flemish Government Decision of 16 N ovember 1994 and Ministerial Order of 
22 December 1994 on integration enterprises " doorvoering van experimenten in verband met 
invoegbedrijven en leereilandprojecten " (period 1 July 1993 – 31 December 1994).  
 
 Flemish Government Decision of 26 March 1996 and Ministerial Order of 22 April 1996 (as 
of 1 January 1995) introducing a regime for an indefinite period.  The Ministerial Order of 
15 December 1999 concerns social integration en terprises recognized prior to 1 January 1999 and 
entered into force on 1 January 1999.  The Flemish Government Or der of 10 November 1998 
concerns social integration enterprises recognized  as from 1 November 1999 and also entered into 
force on 1 January 1999 and is valid for an indefinite period.  (a) Form of the aid
 
 
 - A degressive lump-sum wage premium for each full-time job; 
  - degressive over a three-year period.  (b) Amount of aid in 2003
 
 
 - Total premiums granted in 2003:  EUR 3,810,000. 
 (c) Purpose of the aid
 
  Integration enterprises are newly created en terprises recognized by the Minister and the 
integration of which requires medium-term aid before they can take their place in the normal 
economy.  The aim is to be able to recruit workers with lower qualifications whose reduced 
productivity is offset by a premium given to the employer.  (d) Duration of the programme
 
 
 Indefinite. 
 (e) Statistical data
 
  No statistical data permitting an assessment of the effects of the aid on WTO trade are 
available. 
 
4.3 AID TO ENTERPRISES FOR CONSULTANCY AND ADVICES (old system)  
 
 Decree of 31 March 1993 regarding aid of the Flemish Region to small enterprises which use 
external consultants. 
 
 Decision of the Flemish government of 9 De cember 1997 regarding fi nancial aid to small 
enterprises which use external consultants and regarding the aggregation of consultants. 
  Various implementing guidelines. 
 
(a) Form of aid
 
  Advisory Premium for the consultation of extern al consultants in favour of young or starting 
enterprises. G/SCM/N/123/EEC/Add.2 
Page 24  
 
  
(b) Amount of aid in 2003
 
  Amount:  EUR 282.025,37   
(c) Objectives of the aid
 
  The number of enterprises in bankruptcy is th e largest during the first 5 years of a starting 
enterprise’s life line.  Starting from that assumpti on is was considered useful to allow these 
enterprises to use external consultants du ring the start up phase of the enterprise. 
 
(d) Time frame
 
  The system of advisory premiums was abolished on 5 March 2003
 and was replaced by the 
system of advisory cheques (see below).  Only  hanging cases will still be treated according to the 
conditions of the decision of 1997. 
 
4.3 AID TO ENTERPRISES FOR CONSULTANCY AND ADVICES (new system) 
 
 Decision of the Flemish government of 14 Febr uary 2003 regarding advisory cheques, which 
entered into force on 5 March 2003.  Various implementing ministerial decisions. 
 
 This system replaces the above mentioned system of advisory premiums.  (a) Form of aid
 
 
 This scheme is aimed at enterprises which seek  external advise and consultation, as defined 
by the EU Commission in its SME Regulation No. 70/2001 of 12 January 2001, and was notified to 
the Commission according to the provisions of that Regulation.   Advisory Cheques for the consultation of exte rnal consultants can be used by all SMEs. 
Enterprises can annually obtain a maximum of 820 Advi sory Cheques.  Each Cheque has a value of 
EUR 30 , 50 per cent paid by the enterprise, 50 per cent aid paid by the government. 
 (b) Amount of aid in 2003
 
  The total budget for this scheme in 2003 was:  EUR 5,554,945.00 
 
(c) Objectives of the aid
 
  The Flemish government agrees with to overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of aid to SMEs in order to stimulate 
them to obtain specialized external advises is a pos itive element for the sustainability and results of 
the enterprises. 
  Various studies have indicated that Flemish enterprises did not invest enough in external 
advise.  As specialised external advice could guarantee enterprises a bigger chance to success, the 
Flemish government created the instrument of th e advisory cheques, and recognised and screened 
providers of advises. 
 (d) Time frame
 
  The system was initially set up for a period of 3 years but has been prolonged indefinitely.  G/SCM/N/123/EEC/Add.2 
 Page 25 
 
 
  
 However, as the scheme is based upon the EU  regulation No. 70/2001, which is only valid 
until 31 December 2006, the scheme will have to be  reinforced in 2007, when a new or revised 
EU regulation comes into force.  4.4 AID FOR RESEARCH AND DEVELOPMENT 
 
 Decree of the Flemish Government regard ing the aid to technological research and 
development of industry in Flanders of 5 October 2001.  
(a) Form of the aid
 
  Grants for basic research and for prototyping & development  (b) Amount of aid in 2003
 
 
 87,542 mln € for 348 projects  (c) Purpose of the aid
 
  The primary objective is aid for R&D 
 
(d) Duration of the programme
 
  The data are related to continuous programmes.  
(e) Statistical data
 
  Division by type of research:  
- strategic basic research :34% - industrial basic research :29% 
- prototyping & development :37% 
  Division by applicant:  
- large companies :51% 
- SMEs :33% 
- universities, research institutes :16% 
 (f) Rules and conditions
 
  Any industrial enterprise can apply for financial aid for R&D-projects. 
 
 At any time, the firms can introduce a file to the IWT-Flanders (Institute for the Promotion of 
Innovation by Science and Technology in Flanders) who treats the files.   Also the universities and research institutes can participate in the industrial projects and can 
get financial aid. 
  Projects for industrial basic rese arch activities : a subsidy of 50  per cent of the overall project 
costs (with an additional 10 per cent for SMEs).  G/SCM/N/123/EEC/Add.2 
Page 26  
 
  Projects for industrial development activities : a subsidy of 25 per cent (with an additional 
10 per cent for SMEs).   In addition to the subsidy SMEs can apply fo r a subordinated loan up to 80 per cent of the 
project costs. 
 
 Extra incentives are available for Eureka (+10 per cent), Aeronautics and Space (+10 per 
cent), Sustainable Technological Development (10 per cent).   Projects for strategic basic research in specific RTD-programmes with industrial relevance:  a 
subsidy of 100 per cent. 
  Cost for personnel, material and supplies to R& D, instruments and equipment are eligible for 
aid.  4.5 AID TO THE FISHERIES AND AQUACULTURE SECTOR 
 
 Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional scheme in 1996 (Flemish Government Order of 2 Ap ril 1996), a completely new set of regulations on 
aid for investment and new enterprise in the mar itime fisheries and aquaculture sector was approved 
in 1998.  The aid is given in the context of the " Financieringsinstrument voor de Vlaamse visserij – 
en aquacultuursector  – FIVA" (Financing instrument for th e Flemish fisheries and aquaculture 
sector).   - Decree of 13 May 1997 establishing a fina ncing instrument for the Flemish fisheries 
and aquaculture sector; 
 
 - Flemish Government Order of 7 July 1998 on aid for investment and start-up in the 
fisheries and aquaculture sector; 
  - Ministerial Order of 14 July 1998 on aid for investment and start-up in the fisheries 
and aquaculture sector. 
 
(a) Form of the aid
 
  - Interest rate subsidy: subsidized intere st rates on loans granted to ship owners and 
fish farmers and their cooperatives; 
 
 - capital subsidy when investment is financed by equity;   - loan guarantees for ship owners and fish farmers.  (b) Total amount of aid in 2003 (in terms of commitments
) 
 
 - Interest rate subsidies EUR 452,191   - capital premiums EUR 131,145  
 - loan guarantees EUR 0 
  G/SCM/N/123/EEC/Add.2 
 Page 27 
 
 
 (c) Purpose of the aid  
  The aid is granted to ship owners and fish farmers and their organiza tions and cooperatives in 
order to promote all operations increasing the producti vity of shipping and fish-farming companies, to 
ensure their profitability and reduce costs. 
 
(d) Duration of the programme
 
  Indefinite.  
(e) Statistical data
 
  The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the structures;  no sta tistical data permitting an assessment of its effects 
on global trade are therefore available. 
 
 Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible.  (f) Rules and conditions
 
 
 The beneficiaries of this aid are family sea-fi shing enterprises and fish farms.  The aid is 
granted to beneficiaries after an individual examinat ion of the dossiers.  The subsidization limits set 
out in Council Regulation (EC) No. 2792/99 apply.  
4.6 AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - FLEMISH 
AGRICULTURAL INVESTMENT FUND 
 
 In order to ensure continuity of aid for ag ricultural investment and new enterprise following 
the regionalization of the Agricultural Investment Fund in Belgium as from 1 January 1993, a Flemish Agricultural Investment Fund ( Vlaams Landbouwinvesteringsfonds ) was created. 
 
(a) Form of the aid
 
  - Interest subsidies: interest rate s ubsidies on loans granted for agriculture and 
horticulture; 
 
 - investment premiums; 
  - start-up grants;   - premiums on investment for young farmers/horticulturalists;  
 - guarantees for loans granted for agriculture and horticulture. 
 (b) Amount of aid in 2003 (granted: in terms of commitments)
 
 
 - Interest rate subsidies:  EUR 26,887,838.29 
 
  * New dossiers:  G/SCM/N/123/EEC/Add.2 
Page 28  
 
 • Investment: EUR 21,499,406.41 with 25 per cent co-financing by 
the EAGGF (Council Regulation (EC) No. 1257/99); 
 
• Start-up: EUR 3,179,502.43 with 50 per cent co-financing by 
the EAGGF (Council Regulations (EC) No. 1257/99); 
 
• Regional aid without EAGGF co-financing:  EUR 1,430,986.33. 
   * Reviews of existing dossiers:  EUR 777,943.12.   - Investment premiums:  EUR 18,712,100.12 
   * New dossiers: 
 
• Agriculture:  EUR 17,604,172.70 with 25 per cent co-financing by 
the EAGGF (Council Regulation (EC) No. 1257/99); 
 
• Cooperative societies:  EUR 19,169.50 without EAGGF co-
financing. 
 
  * Reviews of existing dossiers:  EUR 1,088,757.92. 
 
 - Start-up grants:  EUR 4,763,545.89 
 
* New dossiers:  EUR 4,662,204.74 with 50 per cent co-financing by the 
EAGGF (Council Regulation (EC) No. 1257/99). 
   * Reviews of existing dossiers:  EUR 101,341.15.   - Investment premiums:  EUR 36,812.62  (pre-2000 regulations) 
 
* On first start-up:  EUR 36,812.62 with 50 per cent co-financing by the 
EAGGF (Council Regulation (EEC) No. 950/97). 
 
* Pig-farming sector:  nil (with 25 per cent co-financing by the EAGGF) 
(Council Regulation (EEC) No. 950/97). 
 
 - Loan guarantees:  EUR 17,122,923.56 of  guarantees granted (EUR 1,554,131.71 
of guarantees committed for actual payment).  
 
(c) Purpose of the aid
 
 
 This aid is awarded to farmers and horticultu ralists and their organi zations and cooperatives 
to encourage all operations which increase th e productivity of agricultural and horticultural 
enterprises, maintain and improve their profitability and reduce costs, such as: 
  (a) Investment operations, i.e., operations whereby natural or legal persons acquire, 
extend or improve capital assets such as la nd, buildings and c onstructions, including 
housing for the operator and his family, indu strial plant, facilities, machines, tools 
and materials.  This decree is only appli cable to the acquisition of land and buildings 
when this is economically necessary to main tain the profitability of the existing 
enterprise;  G/SCM/N/123/EEC/Add.2 
 Page 29 
 
 
  
 (b) restructuring of enterprises fo llowing changes in economic conditions; 
  (c) agricultural and horticultural start-ups;  
 (d) processing and marketing of agricultural and horticultural products, mainly through 
cooperatives. 
 (d) Duration of the programme
 
 
 Indefinite. 
 (e) Statistical data
 
  The aid has a structural objective of furtheri ng agriculture through enhanced efficiency of 
agricultural enterprises;  no statistical data are th erefore available to assess the effects of the aid on 
world trade.  (f) Legal basis
 
  - Council Regulation (EEC) No. 950/97 of  20 May 1997 on improving the efficiency 
of agricultural structures (coordination of Council Regulation (EEC No. 2328/91 and 
its amendments), for dossiers submitted up to 31 December 1999. 
  - Council Regulation (EC) No. 1257/99 of 17 May 1999 on support for rural 
development from the European Agri cultural Guidance and Guarantee Fund 
(EAGGF) and amending and repealing certain regulations, for dossiers submitted as 
of 1 January 2000. 
  - Article 12 of the Decree of 22 December 1993 containing various measures in 
application of the 1994 budget (establishmen t of a Flemish Agricultural Investment 
Fund). 
 
 - Flemish Government Order and Ministerial Order of 24 November 2000 on aid for 
agricultural investment and new enterprise. 
  - Flemish Government Order of 16 July 1996 regulating the operation and management 
of the " Vlaams Landbouwinvesteringsfonds " (Flemish Agricultural Investment Fund). 
 (g) Rules and conditions
 
  The beneficiaries of this aid are family farms and market gardens (natural or legal persons engaged in agriculture and horticulture), as well as  their organizations and cooperatives.  They must 
be adequately qualified and the business must re present at least one man work unit (MWU) and a 
maximum of 10 man work units per family work unit (FWU).   The aid is granted for three major categories of operation:  
• Investment in an existing business leading to long-term improvement in the structure 
of the business.  There are several sectoral restrictions.  Co-financing by the EAGGF exists up to a certain ceiling (Council Regulation (EEC) No. 950/97 or (EC) No. 
1257/99), beyond which the aid is wholly charged to the Flemish Region with an G/SCM/N/123/EEC/Add.2 
Page 30  
 
 absolute ceiling for dossiers submitted up to 31 December 1999 (Council Regulation 
(EEC) No. 950/97);  for dossiers submitte d from 2000 onwards there is no regional 
complement. 
 
• A young farmer setting up in business for the first time, including movable assets 
(machines and material, livestock, etc.).  Co-financing by the EAGGF exists up to a 
certain ceiling (Council Regulation (EEC) No . 950/97 or (EC) No. 1257/99), beyond 
which the aid is wholly charged to the Flemish Region with an absolute ceiling. 
 
• Other operations without EAGGF co-financing, such as investment aid by 
cooperative societies engaged in marketing, processing and the provision of services. 
 4.7 TRAINING CHEQUES 
 
 Decision of the Flemish government of 14 D ecember 2001 regarding training cheques. 
  Ministerial Decree of 21 December 2001 regard ing the implementation of the decision of the 
Flemish government of 14 December 2001 regarding training cheques. 
 (a) Form of the aid
 
 
 Annual maximum of 200 training cheques for each enterprise. 
 
 Value of the cheques:  EUR 30, 50 per cent paid  by the enterprise, 50 per cent aid paid by the 
government.  (b) Amount of the aid in 2003
 
 
 Amount of aid:  EUR 9,478,765.00 
 (c) Objectives of the aid
 
  Various studies have indicated that Flemish en terprises did not invest enough in training for 
their employees.  The Flemish government created the instrument of the training cheques in order to 
stimulate enterprises to pay for the training courses from recognised and screened providers of 
training.  (d) Time frame
 
 
 The system was initially set up for a period of 3 years but has been prolonged indefinitely. 
  However, as the scheme is based upon the EU regulations No. 68 and 69/2001 – de minimis  
aid and training aid – which are valid until 31 December 2006, the scheme will have to be reinforced in 2007, when new or revised EU regulations come into force.  G/SCM/N/123/EEC/Add.2 
 Page 31 
 
 
  
BELGIUM 
 
ANNUAL REPORT 2004 
 
TABLE OF CONTENTS 
Page  
 
1. BELGIUM – FEDERAL STATE - ANNUAL REPORT 2004 ............................................ 32 
2. BELGIUM – BRUSSELS - CAPITAL REGION - ANNUAL REPORT 2004................... 35 
3. BELGIUM – WALLOON REGION  - ANNUAL REPORT 2004 ....................................... 43 
4. BELGIUM – FLEMISH REGION  - ANNUAL REPORT 2004 .......................................... 47 
 
  
Please note: 1 EURO = 40,3399 BEF (BELGIUM FRANCS) 
 
 
   
INTRODUCTION
 
 
 Following recent reforms in Belgium, the greater part of investment policy is now 
constitutionally the responsibility of  the Flemish, Walloon and Brussels Regions.  Consequently, the 
regions are also responsible for applying legisla tion on economic growth and aiding SMEs in their 
respective areas.  In the Belgian notification of s ubsidies, the evaluation of whether the subsidy is 
"general" or "specific" therefore relates to  the regulations in force in each region. 
 G/SCM/N/123/EEC/Add.2 
Page 32  
 
  
 
1.      BELGIUM – FEDERAL STATE  
ANNUAL REPORT 2004 
 
 
 
1.1 SPECIAL TAXATION SCHEMES 
 
1.1.1 RESTRUCTURING COMPANIES, LAW OF 31 JULY 1984, ROYAL DECREE OF 
3 OCTOBER 1988, LAW OF 22 DECEMBER 1989 (ARTICLE 303), LAW OF 28 DECEMBER 1990 (ARTICLE 18)  
 
(a) Form of the subsidy
 
  Restructuring companies originally benefited from the following, inter alia : 
 
 - Exemption from duty on capital inflow; 
  - exemption from corporate tax for 10 consecutiv e financial years, restricted to the part 
of the dividends that did not exceed  13 per cent of the paid-up capital. 
 (b) Total amount in 2004
 
 
 Exemption from corporate tax: (NCG*) EUR 32.61 million. 
 (c) Policy objective
 
 
 The tax scheme applies to firms set up specially to carry out a conversion project under a 
"conversion contract" and established in one of th e zones defined for this purpose by Royal Decree. 
 (d) Duration
 
  This scheme has not been availabl e since 22 July 1990, nevertheless: 
 
 - For firms set up before 1 January 1990, ex emption from corporate tax ends during the 
fiscal year 2007; 
  - for firms set up between 1 January and 22 July 1990, exemption from corporate tax 
ends during the fiscal year 2002; 
  - no exemption from corporate tax is granted to firms set up after 22 July 1990. 
                                                     
 
* NCG = Net cost for the Government in Euros. 
  G/SCM/N/123/EEC/Add.2 
 Page 33 
 
 
 1.2 TAX MEASURES TO PROMOTE INVESTMENT 
 
 DEDUCTION FOR INVESTMENT, ARTICLES 68 TO 77 CIR92 (and 211, 212 and 215) 
 (a) Form of the subsidy
 
 
 Deduction for investment allows a share of th e amount of investment made during the taxable 
period to be deducted from the basi c taxable amount.  Firms or natu ral persons who declare gains or 
profits are eligible.  
(b) Total amount in 2004
 
  NCG Deduction (NCG
*):  EUR 198.62 million. 
 (c) Policy objective
 
 
 The objective is currently to facilitate inv estment in the research and development and 
energy-saving sectors, as well as in SMEs.  (d) Duration
 
 
 The deduction for investment has been "deactivated" for investment made after 
27 March 1992.  This means that the rate is now  zero, except for the sectors mentioned under "Policy 
objective".  (e) Rules and conditions
 
 
 The deduction may apply to investment in tangi ble or intangible fixed assets used in Belgium 
to exercise a professional activity.   The redeemable amount determines  the basis for calculation and the basic rate is linked to the 
inflation rate.  The basic rate may not exceed 10 per cent or be less than 3 per cent.  It is, however, 
increased for investment in research and development,  investment in innovative firms and investment 
in energy saving.  
1.3 AID FOR RESEARCH AND DEVELOPMENT  
 * Special Law of 8 August 1980, amended on 16 July 1993; 
 
 * Cooperation Agreement of 5 April 1995 between the Federal State and the Regions 
on the public financing of joint centres.  Th is Agreement was terminated with effect 
from 1 January 2002. 
 (a) Form of the subsidy
 
 
 Non-repayable subsidy.  
                                                     
 
* NCG = Net cost for the Government in Euros. G/SCM/N/123/EEC/Add.2 
Page 34  
 
 (b) Total amount of the subsidies granted in 2004
 
  Projects for which the Federal State is responsible:   Total commitments:  EUR 3,090,205. 
 
(c) Purpose of the subsidy
 
  Precompetitive research for industrial purposes.  
(d) Duration
 
  Subsidies are for a period of one year.   G/SCM/N/123/EEC/Add.2 
 Page 35 
 
 
  
 
2.       BELGIUM – BRUSSELS – CAPITAL REGION 
ANNUAL REPORT 2004 
 
 
 
2.1 AID FOR ECONOMIC GROWTH  
 
2.1.1 ORDER OF 1 JULY 1993 ON THE PR OMOTION OF ECONOMIC  GROWTH IN THE 
BRUSSELS-CAPITAL REGION 
 
(a) Form of the subsidy  
  Financial aid is granted in the form of a non-recoverable investment premium.  (b) Total amount of the subsidies granted in 2004
 
 
Type of Investment  Number of 
programmes  Subsidized 
amount 
(in EUR)  Amount of 
premiums 
(in EUR)  Average rate 
of aid 
(in %)  
General investment 24 7,840,846.45 376,126.00 4.80 
    
Specific investment     
    
- Rational energy use 17 2,805,087.46 561,013.00 20.00 
- Rational water use 6 430,878.55 86,174.00 20.00 
- Rational use of raw materials 4 667,118.10 133,422.00 20.00 
- Environmental protection 15 3,885,901.75 777,176.00 20.00 
- Adaptation to European standards 9 6,498,118.12 974,713.00 15.15 
    
 51 14,287,103.98 2,532,498.00 17.73 
TOTAL (general + specific) 75 22,127,950.43 2,908,624.00 13.14 
- Use of consultancy services 
- Use of training services - Use of mentoring services 135 
86 13 3,748,488.86
346,874.71
-1,847,721.60 
165,187.83 
(25,000.00) 49.29 
47.62 
- 
TOTAL (Consultancy, training and mentoring services) 234 4,095,363.57 2,012,909.43 49.15 
OVERALL TOTAL 309 26,223,314.00 4,921,533.43 18.76 
 G/SCM/N/123/EEC/Add.2 
Page 36  
 
  
(c) Policy objective and/or purpose of the subsidy
 
  The policy objective of the Order of 1 July 1993 is to promote economic growth by granting financial aid to industrial enterp rises in Brussels if they invest. 
 
 The amount of this aid depends on the enterprise's  sector of activity, its size and the type of 
investment:   - For all enterprises, "specific" investment for the purpose of: 
 
  * Saving energy, water or raw materials;    * protecting the environment;  
  * adapting to European standards; 
  - for medium-sized enterprises (maximum of 250 employees and turnover of 
EUR 40 million), "general" investment; 
  - for small and medium-sized enterprises (SMEs), "use of consultancy, training and 
mentoring services". 
 (d) Duration of the subsidy and/or an y other time-limits attached to it
 
  Depending on the amount of the premium and the duration of the investment programme, the 
premium is paid in one, two or three annual tranches. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  With regard to the role played by the fi nancial incentives provided in the legislation on 
economic growth, it should be noted that the amount of EUR 22,127,950 of subsidized investment 
under the Order of 1 July 1993 and the amount of EU R 84,825,395 of subsidized investment under the 
Law of 4 August 1978 only represent around 10 per cent of investment made by enterprises situated in 
the Brussels-Capital Region and working in the manufacturing, building and trade sectors.
∗ 
 
2.1.2 ECONOMIC ADJUSTMENT LAW OF 4 AUGUST 1978 
 (a) Form of the subsidy
 
  The financial aid is granted in the form of an interest subsidy or an investment premium 
depending on the method of financing of the investment programme. 
 
                                                     
 
∗ Source: VAT declarations of investment for 2003 = EUR 1,033.32 million.  G/SCM/N/123/EEC/Add.2 
 Page 37 
 
 
 (b) Total amount of aid granted in 2004  
  Interest subsidy
 (in EUR) 
 
Number of decisions 
taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
280 47,067,292.00 3,343,523.00 7.1% 
 
 Investment premium  (in EUR) 
 
Number of decisions 
taken Subsidized amount of 
investment Amount decided Average rate of 
aid 
258 37,758,103.00 2,804,059.00 7.4% 
 
(c) Policy objective and/or purpose of the subsidy  
 
 The aim of the Law of 4 August 1978 is to promote investment by small enterprises.  The amount of the aid depends on the enterprise's field of activity and how long it has existed. 
  According to the Law of 4 August 1978, a sma ll enterprise is one which comprises less than 
50 people and the turnover of wh ich does not exceed EUR 7 million. 
 
 Fields of activity are divided into two groups:  
- Group A: Industrial and non-industrial enterprises or enterprises in the building 
and finishing sector; 
 
- Group B: trade and services enterprises. 
  Pursuant to Directive B7, two types of investment are envisaged:  
- Type 1 (START-UP) : Investment by an enterprise that has existed for less than 
12 months; 
 
- Type 2 (NORMAL) :  investment by an enterprise that has existed for over 
12 months. 
 
 Aid is given in the form of: 
  - An interest subsidy where the investment is financed by a fixed-term credit;   - an investment premium where investment is self-financed.  G/SCM/N/123/EEC/Add.2 
Page 38  
 
  Two types of tax concession may also be granted: 
  - The possibility of doubling straight-line depreciation during three successive financial 
years; 
 
 - exemption from tax on income from immovable assets. 
 (d) Duration of the interest subsidy and the capital premium
 
  In accordance with the criteria set out in subhead ing (c), the interest subsidy may be given for 
a period ranging from three to five years and the investment premium is paid in a lump sum. 
  The duration of the accelerated depreciation is fixed at three years.   The duration of exemption from tax on income from immovable assets is exactly the same as 
that for the interest subsidy. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  - In terms of budgetary implications, 60 per cent of the investment subsidies was 
allocated to dossiers submitted by industr ial and non-industrial enterprises;  40 per 
cent was allocated to dossiers submitte d by business or services enterprises. 
 
2.2 AID FOR RESEARCH AND DEVELOPMENT 
 
2.2.1 SUBSIDIES FOR BASIC INDUSTRIAL RESEARCH 
 
(a) Form of the subsidy
 
  Non-repayable subsidy.  (b) Total amount of aid granted in 2004
 
 
 Commitments: EUR 4,943,415 
 or 9 new projects run by 9 enterprises, including 1 new beneficiary (no university or research 
centre projects).  
 
 Disbursements : EUR 6,523,950. 
 (c) Policy objective and/or purpose of the subsidy
 
  To strengthen basic industrial research by regional enterprises.  
(d) Duration of the subsidy
 
 
 Two years per subsidy. 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Basic industrial research and, as such, not quantifiable in the medium or short term.   G/SCM/N/123/EEC/Add.2 
 Page 39 
 
 
 2.2.2 PRECOMPETITIVE DEVELOPM ENT (e.g., prototype advances) 
 (a) Form of the subsidy
 
  Interest-free loans repayable upon marketing. 
 
(b) Total amount of aid granted in 2004
 
 
 Commitments: EUR 0 
 i.e. No projects in 2004 (no university or research centre projects).  
 
 Disbursements:  EUR 1,182,000.00 (former projects) 
 
(c) Policy objective and/or purpose of the subsidy  
 
 To promote regional development through the creation of new products, processes or 
services. 
 
(d) Duration of the subsidy  
  One to five years. 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term. 
 
2.2.3 PRECOMPETITIVE DEVELOPM ENT (e.g., prototype advances) 
 (a) Form of the subsidy
 
  Interest-free loans. 
 
(b) Total amount of aid granted in 2004
 
 
 Commitments: EUR 2,166,124 
 i.e. 12 new projects run by 12 enterprises, including 8 new beneficiaries (no university or 
research centre projects).  
 
 Disbursements:  EUR 2,261,109.03 
 
(c) Policy objective and/or purpose of the subsidy  
 
 To promote regional development through the creation of new products, processes or 
services. 
 
(d) Duration of the subsidy  
 
 One to five years. 
 G/SCM/N/123/EEC/Add.2 
Page 40  
 
 (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Maintaining and developing comp etitive activities by regional enterprises, not quantifiable in 
the short term.  
2.2.4 EUROPEAN PROGRAMMES 
 (a) Form of the subsidy
 
  Optional non-repayable subsidy. 
 
(b) Total amount of aid granted in 2004
 
 
 Commitments:  EUR 250,000 or 1 project run by one university (no new beneficiary)  
 
 Disbursements: EUR 210,131.94  
 
(c) Policy objective and/or purpose of the subsidy  
  Joint financing of EC subsidies for European  research programmes in universities or research 
centres with no commercial activities. 
 
(d) Duration of the subsidy
 
  Two to three years per dossier.  
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Precompetitive or socio-economic research and,  as such, not quantifiable in the medium or 
short term.  
2.3 AID FOR PROMOTION OF FOREIGN TRADE 
 
2.3.1 ORDER OF 13 JANUARY 1994 ON THE PROMOTION OF FOREIGN TRADE  (a) Form of the subsidy
 
  (A) Subsidies for: 
 
• Participation in trade fairs abroad and in Belgium; 
 
• the elaboration of information documents to promote exports; 
 
• participation in training programmes; 
 
• collaboration of foreign trade experts. 
 
(B) Subsidies and interest-free loans for: 
 
• Market surveys and market presen ce outside the European Union; 
 
• participation in tenders for markets outside the European Union.  G/SCM/N/123/EEC/Add.2 
 Page 41 
 
 
  
(b) Total amount of commitments in 2004 (in EUR)  
 
 Number of 
dossiers Total amount of 
commitments 
Trade fair subsidies 235 (*)550,000.00
Subsidies for collaboration of experts 8 (*)
Training subsidies 0 (*)
Documentation subsidies 119 532,205.44
Market survey subsidies/loans 39 106,832.05
Subsidies/loans for tenders 5 3,886.49
TOTAL 406 1,192,923.98
  (*) Collective commitment (non- differentiated appropriation) 
 (c) Policy objective and/or purpose of the subsidy
 
  Support for trade survey efforts by small and medium-sized enterprises in the Region. 
 
(d) Duration of the subsidy
 
  Ad hoc aid.  (e) Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.  
2.4 AID FOR EMPLOYMENT AND UNEMPLOYMENT 
2.4.1 DECREE OF THE GOVERNMENT OF THE BRUSSELS – CAPITAL REGION OF 
11 MARCH 2004 AMENDING ARTICLES 53 TO 58 OF THE ROYAL DECREE OF 
20 DECEMBER 1963 RELATING TO EMPLOYMENT AND UNEMPLOYMENT. 
 (a) Form of the subsidy:
 
 
 Employment premium 
 
(b) Expenditure:  
  Estimated expenditure 2005  : EUR 1,321,600  Financial year 2004 
 Commitments   : EUR 421,750 
 Payments     : EUR 309,750  Number of projects   : 134  Number of enterprises   : 134  New beneficiaries   : 60 
 New projects    : 60 
 (c) Policy objective and/or purpose of the subsidy.
 
  To enable disadvantaged job-seekers to be empl oyed on the basis of indefinite contracts (or 
fixed-term contracts in the case of a certain category of beneficiaries), while providing them with 
vocational on-the-job training in or der to increase their employability. G/SCM/N/123/EEC/Add.2 
Page 42  
 
  
(d) Duration of the subsidy
. 
 
12 months per subsidy 
 
(e) Statistical data permitting an assessmen t of the trade effects of the subsidy . 
  In 2004, 60 job-seekers gained employment under this measure.  G/SCM/N/123/EEC/Add.2 
 Page 43 
 
 
  
3.     BELGIUM – WALLOON REGION 
ANNUAL REPORT 2004 
 
 
 
3.1 AID TO SMEs 
 
3.1.1 LAW OF 4 AUGUST 1978 ON ECONOMIC ADJUSTMENT, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 21 MAY 1999 
 
(a) Form of the subsidy  
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premiu m are investments in tangible and intangible fixed 
assets. 
  Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.   Accelerated depreciation over a maximum of three successive taxable periods for investment 
in tangible fixed assets.  Exemption from the graduated registration duty on capital inflow. 
 (b) 2004 budget
 
  The budget amounted to EUR 91,883 million. 
 
 The premiums are awarded for a wide ra nge of projects and sectors of activity. 
 (c) Policy objective
 
  The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive contribution to achieving these aims.  
 In practical terms, the premiums are awarded in order to encourage investment by small and 
medium-sized enterprises (SMEs).  An SME is an  enterprise with a payroll not exceeding 250 people 
and a turnover not exceeding EUR 40 million or an annual balance sheet total not exceeding 
EUR 27 million.   The premiums are awarded to SMEs in the industrial, non-industrial, tourism, trade and 
services sectors. 
  The scheme applies in the whole of the Wall oon Region for all enterprises meeting the SME 
criteria.  
 The scheme is therefore not specific, except that it applies only to SMEs. 
 G/SCM/N/123/EEC/Add.2 
Page 44  
 
 (d) Duration
 
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  3.2 AID TO DISADVANTAGED REGIONS 
 
3.2.1 LAW OF 30 DECEMBER 1970 ON ECONOMIC GROWTH, AS AMENDED BY THE 
DECREE OF 25 JUNE 1992 - IMPLEMENTATION ORDERS OF 21 MAY 1999 
 
(a) Form of the subsidy
 
  Investment premium (non-repayable premium)  irrespective of the investment financing 
method.  Investments eligible to receive a premiu m are investments in tangible and intangible fixed 
assets. 
 
 Exemption from tax on income from immovable as sets (maximum five years) for investment 
in immovable assets, including investment in real property and fixtures.   Accelerated depreciation over a maximum of three successive taxable periods for investment in tangible fixed assets. 
 
 Exemption from the graduated registration duty on capital inflow.  (b) 2004 budget
 
 
 The budget amounted to EUR 67.04 million. 
  The premiums are awarded for a wide ra nge of projects and sectors of activity.  
 (c) Policy objective
 
 
 The incentives created to assist  the socio-economic development of the Walloon Region are 
awarded under contracts between th e Walloon Region on the one hand a nd on the other any natural or 
legal person that undertakes to carry out one or more operations aimed at achieving sustainable 
development and promoting job creation.  The incentives are only awarded if they make a decisive contribution to achieving these aims. 
 
 In practical terms, the premiums are awarded in order to encourage investment by large enterprises situated in disadvantaged  zones, known as development zones. 
  Development zones are determined by the Co mmission of the European Union following a 
proposal by a Member State.  In defining the sc ope of such zones, the European Commission uses a 
method defined in 1988 in the "C oordination principles for regional aid".  This method is essentially 
based on an analysis of objective criteria, in cluding per capita GDP and the unemployment rate. 
  The scheme is therefore not specific, except th at it applies only to enterprises located in 
disadvantaged areas which, as explained above, ar e defined on the basis of easily identifiable and 
quantifiable objective criteria. 
  G/SCM/N/123/EEC/Add.2 
 Page 45 
 
 
 (d) Duration  
  No time-limit has been fixed for the implemen tation of the scheme and the budget is adopted 
annually.  3.3 RESEARCH AND TECHNOLOGY AID 
 
3.3.1 DECREE OF 5 JULY 1990 ON AID AND ACTION BY THE WALLOON REGION TO 
PROMOTE RESEARCH AND TECHNOLOGY, AND THE IMPLEMENTING ORDERS 
THEREOF 
 
 - Walloon Government Decree of 29 September 1994 defining the "small or medium-
sized enterprise" with a view to granti ng aid and taking action to promote research 
and technology;  
 
 - Walloon Government Decree of 29 Septem ber 1994 on aid and action to promote 
research and technology. 
 
(a) Form of the aid
 
  A. Subsidies granted to enterprises for basic industrial research work. 
 
 B. Repayable advances to enterprises for work related to applied research and 
development. 
  C. Subsidies granted to small and medium-s ized enterprises for preparatory or associated 
studies for research or development projects. 
 (b) 2004 budget
 
  The amount of aid per unit consists of a per centage of the admissible expenditure for the 
accepted project. 
 
 The annual global budget for the types of aid set out in point (a) are EUR 10.51 million, EUR 40.95 million and EUR 3.82 million respectively.  (c) Policy objective
 
 
 This horizontal aid is designed to promot e research and development activities and to 
encourage technological innovation.  It is available to all sectors of economic activity.   The types of aid defined under A and B above are available to enterprises of any size.  The 
aid mentioned under C is restricted to small and medium-sized enterprises. 
 
 The aid is not awarded automatically, but is dependent upon an assessment by the administrative services of the quality of the project.   Where aid consists of a repayable advance, the beneficiary enterprise pays it back in the form 
of regular payments if it has decided to exploit th e results of the research industrially or commercially. 
 G/SCM/N/123/EEC/Add.2 
Page 46  
 
 (d) Duration
 
  The aid scheme may be applied indefinitely.  The budget is adopted annually by the Walloon 
Parliament.  
 The duration of aid granted corresponds to th e duration of the research work or the study 
being financed.  (e) Statistical data
 
 
 The aid has an impact on trade because it may lead to the marketing of innovative products, 
processes or services.  The criteria for estimating this  impact are so numerous and complex that it is 
extremely difficult to apply statistical tools to them.   G/SCM/N/123/EEC/Add.2 
 Page 47 
 
 
  
4.      BELGIUM – FLEMISH REGION 
ANNUAL REPORT 2004 
 
 
 
4.1 AID FOR ECONOMICAL EXPANSION 
4.1.1 LAW OF 30 DECEMBER 1970 REGARDING ECONOMICAL EXPANSION 
 (a) Form of aid
 
 
 - Interest premium (for investments financed through credit or leasing);   - Capital premium (for investments financed through own resources of the enterprise);  
 - Fiscal advantages; 
  - Guarantees by the Flemish Region;   - Credits refundable without interest (abolished).  
(b) Amount of aid in 2004
 
  - Interest and Capital premiu ms:  EUR 11.579.063,12 budgeted; 
  - Fiscal advantages: 
 
• exoneration of the immovable advanced tax payment (précompte 
immobilier):  percentage of a total amount of EUR 38.845.341,00 
investments; 
 
• accelerated amortisation: 0 EUR (amount of investments); 
 
• exoneration of the proportional right re garding the contribution of capital:  
EUR 0 (abolished); 
  - Guaranties: EUR 0 (amount of investments);      EUR 0 (amount of the net losses);  
 - Credit refundable without interest : 0 EUR (abolished). 
 (c) Objectives of the aid
 
  The aid is granted to promote the economical expansion of large and middle sized enterprises 
in regional aid areas within the Flemish Region for investments that lead to a creation of extra 
employment.  G/SCM/N/123/EEC/Add.2 
Page 48  
 
  The scheme contains certain limitations regard ing the applicable sectors, investments and 
ways of financing.  (d) Time frame
 
 
 The application of the law of 30 December 1970 will come to an end on 31 December 2003 .  
Only hanging cases will still be treated according to the conditions of this law.  (e) Statistics
 
 
 There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on the WTO commerce and trade.  (f) Legal Base
 
 
 Law of 30 December 1970 rega rding economical expansion. 
 (g) Rules and conditions
 
  The scheme applies to large and middle sized en terprises, with an activity in the industrial, 
commercial or artisan field, as well as in services and the tourist sector.  
 
 Only investments that lead to a creation of extra employment in assisted area’s within the 
Flemish Region are envisaged.   The Flemish authorities use the SME de finition as recommended by the European 
Commission. 
  Enterprises can receive following aid:   Interest and capital premiums are accorded for investments which create extra employment, have a strategic effect for the Region or a favourable effect for the environment. 
 
 Fiscal advantages:  
• Exoneration of the immovable advanced tax payment during maximum 
5 years aims at investment s in immovable goods by nature or by destination, 
and which are comprised in the land register. 
 
• accelerated amortisation is available for enterprises situated in the assisted 
areas in Limburg.  All the eligible investments which are amortised linearly are admissible.  The advantage implies the possibility of using an annual amortisation, which equals twice the amount of a normal linear amortisation 
during 3 subsequent years. 
 
• the exoneration of the proportional righ t regarding the contribution of capital 
was given to large or middle sized enterprises having a corporate existence, for investments in regional aid zones.  This type of aid was abolished by a 
decision of the Flemish government of 17 July 2000. 
  The guarantees of the Flemish au thorities intend to facilitate the grant of professional credits to 
enterprises which invest in economical expansion.  The guarantee must be considered next to the  G/SCM/N/123/EEC/Add.2 
 Page 49 
 
 
 securities, financed by the enterprise itself, but can not support the totality of the risks.  A part of the risk 
has to be supported by the credit institution and the enterprise itself, wh ich both pay a contribution 
depending on the amount and time frame of the guarantee.   Soft aid consists of a refundable  credit without in terest for training project s, advise to enterprises 
or studies regarding (possible future) investments.  This kind of aid was also abolished. 
 4.1.2 LAW OF 4 AUGUST 1978 REGARDI NG THE ECONOMICAL REORIENTATION 
 (a) Form of the aid
 
 
 - Interest premium (for investments financed through credit or leasing);   - Capital premium (for investments financed through own resources of the enterprise);  
 - Fiscal advantages, exoneration of th e immovable advanced tax payment. 
 (b) Amount of aid in 2004
 
  - Interest and Capital premiu ms:  EUR 49.030.183,10 budgeted; 
 
 - Exoneration of the immovable advanced ta x payment:  percentage of a total amount 
of EUR 535.031.391,61 investments. 
 (c) Objectives of the aid
 
 
 The aid is granted to promote the economical expansion of small, independent enterprises 
within the Flemish Region.   The scheme contains certain limitations regard ing the applicable sectors, investments and 
ways of financing.  
(d) Time-frame
 
  The application of the law of 4 August 1978 will come to an end on 31 December 2003
.  Only 
hanging cases will still be treated accord ing to the conditions of this law. 
 
(e) Statistics  
  There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on the WTO commerce and trade.  (f) Legal Base
 
 
 Law of 4 August 1978 regarding the economical reorientation. 
 (g) Rules and conditions
 
 
 The scheme applies to small enterprises, with an activity in the industrial, commercial or 
artisan field, as well as in services, the tourist sector  and the liberal or independent professions which 
have a clear link with the economical activities of the small enterprises.  G/SCM/N/123/EEC/Add.2 
Page 50  
 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission.   The amount of the interest and capital premiums is calculated according to the activity of the enterprise, the first establishment of the enterprise in  Flanders, the creation of extra employment, strategic 
effect for the Region or favourable effect for the environment. 
  Enterprises which benefit from an interest or capital premium can receive an exoneration of the 
immovable advanced tax payment during maximum 5 years for investments in immovable goods by 
nature or by destination, and whic h are comprised in the land register. 
 
4.1.3 DECREE OF 15 DECEMBER 1993 RE GARDING THE ECONOMICAL EXPANSION IN 
THE FLEMISH REGION 
 (a) Form of aid
 
 
 - Interest premium (for investments financed through credit or leasing);   - Fiscal advantages, exoneration of the immovable advanced tax payment; 
  - Guarantees by the Flemish Region; 
 
 - Credits refundable without interest (abolished).  (b) Amount of aid in 2004
 
 
 - Interest premium:  EUR 56,715,476.00 budgeted; 
  - Exoneration of the immovabl e advanced tax payment: percen tage of a total amount of 
EUR 354,238,337.91 investments; 
  - Guaranties: EUR 0 (amount of investments) 
    EUR 167.000 (amount of the net losses); 
  - Credit refundable without in terest:  EUR 0 (abolished).  
 (c) Objectives of the aid
 
 
 The aid is granted to promote the economical ex pansion of large and medium sized enterprises 
within the Flemish Region.   The scheme contains certain limitations regard ing the applicable sectors, investments and 
ways of financing. 
 
(d) Time frame
 
  The application of the decree of 15 December 1993 will come to an end on 
31 December 2003  for all aid to medium sized enterprises. 
 
 Aid to large enterprises for environmental inv estments on the basis of the decree of 1993 will 
come to an end in October 2004 .  Only hanging cases will still be treated according to the conditions 
of this law.   G/SCM/N/123/EEC/Add.2 
 Page 51 
 
 
 (e) Statistics  
  There are no statistics available which could contri bute to the evaluation of the effects of this 
aid scheme on the WTO commerce and trade.  
(f) Legal Base
 
  Decree of 15 December 1993 regarding the ec onomical expansion in the Flemish Region. 
 (g) Rules and conditions
 
 
 The scheme applies to large and middle sized ente rprises, with an activity in the industrial, 
commercial or artisan field, as well as in services and the tourist sector.   It applies only to investments outside the assist ed areas within the Flemish Region, or in the 
assisted areas provided that the investments do no t lead to the creation of extra employment. 
  The Flemish authorities use the SME de finition as recommended by the European 
Commission.   Interest premiums for medium sized enterprises
 are accorded for investments which create 
extra employment, have a strategic effect for the Re gion or a favourable effect for the environment. 
  The exoneration of the immovable advanced tax payment during maximum 5 years aims at investments in immovable goods by nature or by destination, and which are comprised in the land 
register. 
 
 The guarantees of the Flemish authorities intend to facilitate the grant of professional credits 
to enterprises which invest in economical expansion.   The guarantee must be considered next to the 
securities, financed by the enterprise itself, but can not  support the totality of the risks.  A part of the 
risk has to be supported by the credit institu tion and the enterprise itself, which both pay a 
contribution depending on the amount  and time frame of the guarantee. 
 
 Soft aid consists of a refundable credit without interest for training projects, advise to enterprises or studies regarding (possible future) investments.   Aid for large enterprises
 is limited to ecological investments and are implemented through a 
investment premium, soft aid, an exoneration of the immovable advanced tax payment or a guarantee 
by the Flemish Region.  4.1.4 DECREE OF 31 JANUARY 2003 REGARDI NG THE ECONOMICAL SUPPORT POLICY 
  The decree of 31 January 2003 is the new Flemis h legal bases for most aid schemes and replaces 
the old economical expansion laws of 30 Dece mber 1970 and 4 August 1978 and the decree of 
15 December 1993.   On the basis of this decree, new aid schemes will be implemented.  
A. DECISION OF THE FL EMISH GOVERNMENT OF 10 OC TOBER 2003 REGARDING THE 
GRANTING OF AID TO SMALL AND MEDIUM SIZED ENTERPRISES FOR INVESTMENTS IN THE FLEMISH REGION (GROWTH PREMIUM) 
 G/SCM/N/123/EEC/Add.2 
Page 52  
 
 (a) Form of aid
 
  This scheme is aimed at investment aid, as defined by the EU Commission in its SME Regulation No. 70/2001 of 12 January 2001, a nd was notified to the Commission according to 
the provisions of that Regulation. 
 
(b) Amount of aid in 2004
 
  The first call was launched on 18 November 2003 and ended on 31 March 2004.  The budget 
was 100 per cent controllable as the call system s guarantees a "closed envelope".  The budget 
foreseen for this call was EUR 30,000,000, which will be paid starting from 2004. 
  Outside the call system, a budget of EUR 3, 431,823 was foreseen for strategic projects.  
 (c) Objectives of the aid
 
 
 The Flemish government agrees with to overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The promotion of investments by SMEs is one of the 
best ways of ensuring that.  The aid sch eme aims at promoting entrepreneurship. 
 (d) Time frame
 
 
 The decision of the Flemish government of 10 October 2003 is principa lly unlimited in time. 
However, as the scheme is based upon the EU regulation No. 70/2001, wh ich is only valid until 
31 December 2006, the scheme will have to be reinforced in 2007, when a new or revised 
EU regulation comes into force. 
 
(e) Statistics  
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on the WTO commerce and trade.  
(f) Legal Base
 
  The decree of 31 January 2003 regarding the economical support policy and its implementing 
decisions of the Flemish government (e.g. decision of 10 October 2003).  
(g) Rules and conditions
 
  The scheme is developed for aid to SMEs, and w ill have effect on the whole of the territory of 
the Flemish Region.  In the assisted areas the maximu m percentage of possible aid to be given to the 
enterprises shall be higher.  
 The Flemish government adopted a double standard for investment aid to SMEs, depending 
on the amount of the investments envisaged by the enterprises.   If the eligible investments are below EUR 8 milli on, a so called "call" system is used.  All 
companies that wish to receive aid, can participat e in a concourse and file a dossier, which will be 
assessed on basis of some pre-established criteria.  This  system is rather easy going, as the best ranked 
projects are granted the aid, as far as the budget allows  it. Such calls can be organised every 3 months. 
  Investment programmes between EUR 8 million and EUR 25 million (the so called "strategic 
programmes") will be decided upon by Decision of th e Flemish Government.  This work method is  G/SCM/N/123/EEC/Add.2 
 Page 53 
 
 
 necessary to allow the Minister of economic affair s some space to negotiate with the companies 
interested in investing in Flanders.   The enterprises qualifying for aid will receive a per centage of their eligible investment costs. 
 
B. DECISION OF THE FLEMISH GOVERNM ENT OF 12 DECEMBER  2003 REGARDING 
THE GRANTING OF AID TO LARGE ENTERPRISES FOR INVESTMENTS IN THE ASSISTED AREAS IN THE FLEMISH REGION 
 (a) Form of aid
 
 
 This scheme is aimed at investments performed  by large enterprises in assisted areas, and is 
based on the EU Guidelines on regional aid (OJ, 10/3/1998, C74).  The scheme was notified to, and 
approved by, the European Commission.  The new scheme came into force on 1 January 2004, and 
replaces the "old" system based on the law of 30 December 1970. 
 
(b) Amount of aid in 2004  
  For large enterprises located in  assisted areas, the Flemish government decided not to launch 
a "call" for investments under EUR 8 million.  
 Only strategic projects (investments over EUR 8 million) were accepted.  In 2004 a total of 
EUR 3,892,882 was attributed to this type of aid.  (c) Objectives of the aid
 
 
 Regional aid aims at the development of the least scoring areas within the Flemish Region and 
allows the Flemish government a strong tool in orde r to attract (new) investors towards the assisted 
areas where the economic situation is less favourable than in the rest of the country and European 
Union.  (d) Time frame
 
 
 The decision of the Flemish government of  12 December 2003 came into force as of 
1 January 2004 and will end on 31 December 2006, th e ultimate valid date of the regional aid maps 
approved by the European Commission for the period 2000-2006.  
(e) Statistics
 
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on the WTO commerce and trade.  (f) Legal Base
 
 
 The decree of 31 January 2003 regarding the economical support policy and its implementing 
decisions of the Flemish government (e.g. decision of 12 December 2003).  (g) Rules and conditions
 
 
 The scheme is developed for aid to large ente rprises within assisted areas.  The maximum 
percentage of possible aid to be given is fixe d by the European Commission.  The enterprises 
qualifying for aid will receive a percentage  of their eligible investment costs. 
 G/SCM/N/123/EEC/Add.2 
Page 54  
 
  Theoretically, there exists a double standard for investment aid for large enterprises in 
assisted areas, depending on the amount of the investments envisaged by the enterprises.  However, the Flemish government decided in 2004, not to launch a call procedure for investments below 
EUR 8 million.  Only aid to strategic projects (investment programmes above EUR 8 million), decided upon by Decision of the Flemish Government, were accepted. 
 
C. DECISION OF THE FL EMISH GOVERNMENT OF 1 OC TOBER 2004 REGARDING THE 
GRANTING OF AID TO ENTERPRISES FO R ECOLOGICAL INVESTMENTS IN THE 
FLEMISH REGION (ECOLOGICAL PREMIUM) 
 
(a) Form of aid
 
  This scheme is aimed at investment aid, but exclusively for ecological investments, as defined 
by the EU Commission in its Framework regarding state aid in favour of the environment (OJ, 3/2/2001, C 37), and was notified to, and approved by, the European Commission.  
 
(b) Amount of aid in 2004
 
  In 2004, the Flemish government granted aid for ecological investments based on this new 
scheme, for a total budget of EUR 641.520,66.  
(c) Objectives of the aid
 
  The Flemish government agrees with to overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of ecological investments is a valuable 
tool in achieving that goal. 
 
(d) Time frame
 
  The decision of the Flemish government of 1 October 2004 came into force on 29 October 2004 and replaces
 the "old" system based upon the decree of 15 December 1993  and the 
law of 30 December 1970.  The scheme is approved for a period of 10 years. 
 
(e) Statistics  
  As the scheme is very recent, there are no st atistics available which could contribute to the 
evaluation of the effects of this aid scheme on the WTO commerce and trade. 
 
(f) Legal Base
 
  The decree of 31 January 2003 regarding the economical support policy and its implementing 
decisions of the Flemish government (e.g. decision of 1 October 2004).  
(g) Rules and conditions
 
  The scheme is developed for aid all enterpri ses, regardless of their size, for ecological 
investments.  The enterprises qualifying for aid will receive a percentage of their eligible investment 
costs. 
 
 Depending on the sort of investment (ecological, energy, … ), various aid densities are possible, within the maximum EU framework.  Th e Flemish government estab lished a limited list of 
accepted technologies which qualify for aid.  If an enterprise invests in a accepted technology, it 
automatically receives a subsidy.  If the technolog y is not already accepted, another procedure is  G/SCM/N/123/EEC/Add.2 
 Page 55 
 
 
 followed in order to investigate the merits of th e new technology.  If accepted by the engineers of the 
Ministry of the Flemish Community, the new tec hnology is placed upon the list, thus ensuring easier 
acceptance for future cases.  
4.2 SOCIAL INTEGRATION ENTERPRISES (SOCIAL ECONOMY) 
 
 Flemish Government Decision of 16 N ovember 1994 and Ministerial Order of 
22 December 1994 on integration enterprises " doorvoering van experimenten in verband met 
invoegbedrijven en leereilandprojecten " (period 1 July 1993 - 31 December 1994).  
 
 Flemish Government Decision of 26 March 1996 and Ministerial Order of 22 April 1996 (as 
of 1 January 1995) introducing a regime for an indefinite period.  The Ministerial Order of 
15 December 1999 concerns social integration en terprises recognized prior to 1 January 1999 and 
entered into force on 1 January 1999.  The Flemish Government Or der of 10 November 1998 
concerns social integration enterprises recognized  as from 1 November 1999 and also entered into 
force on 1 January 1999 and is valid for an indefinite period. 
 (a) Form of the aid
 
  - A degressive lump-sum wage premium for each full-time job;  
 - degressive over a three-year period. 
 (b) Amount of aid in 2004
 
  - Total premiums granted in 2004  EUR 5,860,000. 
 
(c) Purpose of the aid
 
  Integration enterprises are newly created en terprises recognized by the Minister and the 
integration of which requires medium-term aid before they can take their place in the normal economy.  The aim is to be able to recruit workers with lower qualifications whose reduced 
productivity is offset by a premium given to the employer. 
 (d) Duration of the programme
 
  Indefinite. 
 
(e) Statistical data
 
  No statistical data permitting an assessment of the effects of the aid on WTO trade are available.  4.3 AID TO ENTERPRISES FOR CONS ULTANCY AND ADVICES (old system)  
 
 Decree of 31 March 1993 regarding aid of the Fl emish Region to small enterprises which use 
external consultants.  
 Decision of the Flemish government of 9 De cember 1997 regarding fi nancial aid to small 
enterprises which use external consultants and regarding the aggregation of consultants. 
  Various implementing guidelines.  G/SCM/N/123/EEC/Add.2 
Page 56  
 
 (a) Form of aid
 
  Advisory Premium for the consultation of extern al consultants in favour of young or starting 
enterprises.  
(b) Amount of aid in 2004
 
  Amount:  EUR 0  (c) Objectives of the aid
 
 
 The number of enterprises in bankruptcy is the largest during the first 5 years of a starting 
enterprise’s life line.  Starting from that assumption is  was considered useful to allow these enterprises 
to use external consultants during the start up phase of the enterprise. 
 
(d) Time-frame  
  The system of advisory premiums was abolished on 5 March 2003
 and was replaced by the 
system of advisory cheques (see below).  
4.3 AID TO ENTERPRISES FOR CONS ULTANCY AND ADVICES (new system) 
 
 Decision of the Flemish government of 14 Febr uary 2003 regarding advisory cheques, which 
entered into force on 5 March 2003.  Various implem enting ministerial decisions were issued.  This 
system replaces the above mentioned system of advisory cheque.  
 The decision was amended by decision of th e Flemish government of 30 April 2004 regarding 
advisory cheques.  (a) Form of aid
 
  This scheme is aimed at enterprises which seek external advise and consultation, as defined 
by the EU Commission in its SME Regulation No. 70/2001 of 12 January 2001, and was notified to 
the Commission according to the provisions of that Regulation.   Advisory Cheques for the consultation of ex ternal consultants can be obtained SMEs.  
Enterprises can annually obtain a maximum of 820 Advi sory Cheques.  Each Cheque has a value of 
EUR 30, 50 per cent paid by the enterprise, 50 per cent aid paid by the government. 
 (b) Amount of aid in 2004
 
  The total budget for this scheme in 2004 was:  EUR 15,000,000.00  
(c) Objectives of the aid
 
  The Flemish government agrees with to overa ll aim of reduction and reorientation of aid 
measures towards more horizontal objectives.  The pr omotion of aid to SMEs in order to stimulate 
them to obtain specialized external advises is a pos itive element for the sustainability and results of 
the enterprises. 
  Various studies have indicated that Flemish enterprises did not invest enough in external 
advise.  As specialised external advice could guarantee enterprises a bigger chance to success, the  G/SCM/N/123/EEC/Add.2 
 Page 57 
 
 
 Flemish government created the instrument of th e advisory cheques, and recognised and screened 
providers of advises.  (d) Time-frame
 
 
 The system was initially set up for a period of 3 years but has been prolonged indefinitely. 
  However, as the scheme is based upon the EU  regulation No. 70/2001, which is only valid 
until 31 December 2006, the scheme will have to be  reinforced in 2007, when a new or revised 
EU regulation comes into force. 
 
4.4 AID FOR RESEARCH AND DEVELOPMENT 
 
 Decree of the Flemish Government regarding the aid to technological research and development of the industry in Flanders of 05.10.2001. 
 
(a) Form of the aid
 
  Grants for basic research and for prototyping & development  (b) Amount of aid in 2004
 
 
 91,388 mln € for 345 projects  (c) Purpose of the aid
 
 
 The primary objective is aid for R&D 
 (d) Duration of the programme
 
  The data are related to continuous programmes.  
(e) Statistical data
 
  Division by type of research:   - industrial basic research: 11% 
 - mixed research:   50% 
 - prototyping & development: 39%   Division by applicant:   - large companies :  54% 
 - SMEs:    30% 
 - universities, research institutes: 16%  (f) Rules and conditions
 
 
 Any industrial enterprises can apply for financial aid for R&D-projects. 
  At any time, the firms can introduce a file to the IWT-Flanders (Institute for the Promotion of 
Innovation by Science and Technology in Flanders) who treats the files.  G/SCM/N/123/EEC/Add.2 
Page 58  
 
  Also the universities and research institutes can participate in the industrial projects and can 
get financial aid.   Projects for industrial basic rese arch activities : a subsidy of 50  per cent of the overall project 
costs (with an additional 10 per cent for SMEs).  Projects for industrial development activities:  a 
subsidy of 25 per cent (with an additional 10 per cent for SMEs). 
  In addition to the subsidy SMEs can apply fo r a subordinated loan up to 80 per cent of the 
project costs.  
 Extra incentives are available for Eureka (+10 per cent), Aeronautics and Space (+10 per 
cent), Sustainable Technological Development (10 per cent).   Projects for strategic basic research in specific RTD-programmes with industrial relevance:  a subsidy of 100 per cent. 
 
 Cost for personnel, material and supplies to R& D, instruments and equipment are eligible for 
aid.  
4.5 AID TO THE FISHERIES AND AQUACULTURE SECTOR 
  Following the abolition of the scheme to aid shipyards on 1 January 1996 and a transitional 
scheme in 1996 (Flemish Government Order of 2 Ap ril 1996), a completely new set of regulations on 
aid for investment and new enterprise in the mar itime fisheries and aquaculture sector was approved 
in 1998.  The aid is given in the context of the " Financieringsinstrument voor de Vlaamse visserij - en 
aquacultuursector – FIVA " (Financing instrument for the Flemis h fisheries and aquaculture sector). 
 
 - Decree of 13 May 1997 establishing a fina ncing instrument for the Flemish fisheries 
and aquaculture sector; 
  - Flemish Government Order of 7 July 1998 on aid for investment and start-up in the 
fisheries and aquaculture sector; 
 
 - Ministerial Order of 14 July 1998 on aid for investment and start-up in the fisheries 
and aquaculture sector. 
 (a) Form of the aid
 
 
 - Interest rate subsidy: subsidized intere st rates on loans granted to ship owners and 
fish farmers and their cooperatives; 
  - capital subsidy when investment is financed by equity;  
 - loan guarantees for ship owners and fish farmers. 
 (b) Total amount of aid in 2004 (in terms of commitments
) 
  - Interest rate subsidies: EUR 65,406; 
 
 - capital premiums: EUR 1,509,349;   - loan guarantees:  EUR 0.   G/SCM/N/123/EEC/Add.2 
 Page 59 
 
 
 (c) Purpose of the aid  
  The aid is granted to ship owners and fish farmers and their organiza tions and cooperatives in 
order to promote all operations increasing the producti vity of shipping and fish-farming companies, to 
ensure their profitability and reduce costs. 
 
(d) Duration of the programme
 
  Indefinite.  
(e) Statistical data
 
  The purpose of the aid is structural and in tended to promote fishing and aquaculture by 
improving the efficiency of the related structures;  no statistical data permitting an assessment of the 
effects on global trade are therefore available. 
 
 Given that the capacity of the fishing fleet and the aquaculture sector is very limited, the 
effect on global trade is negligible.  (f) Rules and conditions
 
 
 The beneficiaries of this aid are family sea-fi shing enterprises and fish farms.  The aid is 
granted to beneficiaries after an individual examinat ion of the dossiers.  The subsidization limits set 
out in Council Regulation (EC) No. 2792/99 apply.  
4.6 AID FOR AGRICULTURAL INVESTMENT AND NEW ENTERPRISE - FLEMISH 
AGRICULTURAL INVESTMENT FUND 
 
 In order to ensure continuity of aid for ag ricultural investment and new enterprise following 
the regionalization of the Agricultural Investment Fund in Belgium as from 1 January 1993, a Flemish Agricultural Investment Fund ( Vlaams Landbouwinvesteringsfonds ) was created. 
 
(a) Form of the aid
 
  - Interest subsidies: interest rate s ubsidies on loans granted for agriculture and 
horticulture; 
 
 - investment premiums; 
  - start-up grants;   - premiums on investment for young farmers/horticulturalists;  
 - guarantees for loans granted for agriculture and horticulture. 
 (b) Amount of aid in 2002 (granted:  in terms of commitments)
 
  - Interest rate subsidies:  EUR 27,876,715.98 
 G/SCM/N/123/EEC/Add.2 
Page 60  
 
   * New dossiers: 
 
• Investment:  EUR 20,248,140.96 with 25 per cent co-financing by the 
EAGGF (Council Regulation (EC) No. 1257/99); 
 
• Start-up:  EUR 2,451,877.62 with 50 per cent co-financing by the EAGGF 
(Council Regulation (EC) No. 1257/99); 
 
• Regional aid without EAGGF co-financing: EUR 4,812,118.84. 
  * Review of existing dossiers:  EUR 364,578.56.   - Investment premiums:  EUR 17,379,055.07 
 
  * New dossiers:  
• Agriculture:  EUR 16,217,426.24 with 25 per cent co-financing by the 
EAGGF (Council Regulation (EC) No. 1257/99); 
 
• Cooperative societies:  EUR 236,193.96 (without EAGGF co-financing). 
   * Review of existing dossiers:  EUR 925,434.87.   - Start-up grants:  EUR 4,173,219.58 
 
* New dossiers:  EUR 4,173,219.58 with 50 per cent co-financing by the 
EAGGF (Council Regulation (EC) No. 1257/99). 
   * Review of existing dossiers:  Nil.   - Investment premiums:  EUR 38,358.08  
 
* On first start-up:  EUR 37,694.04 (pre-2000 regulations) with 50 per cent co-
financing by the EAGGF (Counc il Regulation (EEC) No. 950/57). 
 
* Pig-farming sector:  EUR 664.04 with 25 per cent co-financing by the 
EAGGF (Council Regulation (EEC) No. 950/97). 
  - Loan guarantees:  EUR 17,888,010.32 of loan guarantees granted 
(EUR 1,201,605.77 of guarantees committed for actual payment).  
 (c) Purpose of the aid
 
  This aid is awarded to farmers and horticultu ralists and their organi zations and cooperatives 
to encourage all operations which increase th e productivity of agricultural and horticultural 
enterprises, maintain and improve their profitability and reduce costs, such as: 
 
 (a) Investment operations, i.e., operations whereby natural or legal persons acquire, 
extend or improve capital assets such as la nd, buildings and c onstructions, including 
housing for the operator and his family, indu strial plant, facilities, machines, tools 
and materials.  This decree is only appli cable to the acquisition of land and buildings  G/SCM/N/123/EEC/Add.2 
 Page 61 
 
 
 when this is economically necessary to main tain the profitability of the existing 
enterprise; 
  (b) restructuring of enterprises fo llowing changes in economic conditions; 
 
 (c) agricultural and horticultural start-ups; 
  (d) processing and marketing of agricultural and horticultural products, mainly through 
cooperatives. 
 
(d) Duration of the programme
 
  Indefinite.  (e) Statistical data
 
 
 The aid has a structural objective of furtheri ng agriculture through enhanced efficiency of 
agricultural enterprises; no statistical data permitting an assessment of the eff ects of the aid on world 
trade are therefore available.  (f) Legal basis
 
 
 - Council Regulation (EEC) No. 950/97 of  20 May 1997 on improving the efficiency 
of agricultural structures (coordination of Council Regulation (EEC No. 2328/91 and its amendments), for dossiers submitted up to 31 December 1999. 
 
 - Council Regulation (EC) No. 1257/99 of 17 May 1999 on support for rural 
development from the European Agri cultural Guidance and Guarantee Fund 
(EAGGF) and amending and repealing certain regulations, for dossiers submitted as of 1 January 2000. 
  - Article 12 of the Decree of 22 December 1993 containing various measures in 
application of the 1994 budget (establishmen t of a Flemish Agricultural Investment 
Fund). 
  - Flemish Government Order and Ministerial Order of 24 November 2000 on aid for 
agricultural investment and new enterprise. 
 
 - Flemish Government Order of 16 July 1996 regulating the operation and management 
of the " Vlaams Landbouwinvesteringsfonds " (Flemish Agricultural Investment Fund). 
 (f) Rules and conditions
 
 
 The beneficiaries of this aid are family farms and market gardens (natural or legal persons 
engaged in agriculture and horticulture), as well as  their organizations and cooperatives.  They must 
be adequately qualified and the business must re present at least one man work unit (MWU) and a 
maximum of 10 man work units per family work unit (FWU).  
 The aid is granted for three major categories of operation: 
 
• Investment in an existing business leading to long-term improvement in the structure 
of the business.  There are several sectoral restrictions.  Co-financing by the EAGGF G/SCM/N/123/EEC/Add.2 
Page 62  
 
 exists up to a certain ceiling (Counc il Regulation (EEC) No. 950/97 or (EC) 
No. 1257/99), beyond which the aid is wholly charged to the Flemish Region with an absolute ceiling for dossiers submitted up to 31 December 1999 (Council Regulation 
(EEC) No. 950/97);  for dossiers submitte d from 2000 onwards there is no regional 
complement. 
 
• A young farmer setting up in business for the first time, including movable assets 
(machines and material, livestock, etc.).  Co-financing by the EAGGF exists up to a 
certain ceiling (Council Regulation (EEC) No . 950/97 or (EC) No. 1257/99), beyond 
which the aid is wholly charged to the Flemish Region with an absolute ceiling. 
 
• Other operations without EAGGF co-financing, such as investment aid by 
cooperative societies engaged in marketing, processing and the provision of services. 
 
4.7 TRAINING CHEQUES 
 
 Decision of the Flemish government of 14 D ecember 2001 regarding training cheques. 
 
 Ministerial Decree of 21 December 2001 regard ing the implementation of the decision of the 
Flemish government of 14 December 2001 regarding training cheques.   The decision was amended by decision of the Flemish government of 2 April 2004 regarding 
training cheques. 
 
(a) Form of the aid
 
  Annual maximum of 200 training cheques for each enterprise.  
 Value of the cheques:  EUR 30, 50% paid by the enterprise, 50% aid paid by the government. 
 (b) Amount of the aid in 2004
 
  The total budget for this scheme in 2004 was:  EUR 22,500,000.00 
 
(c) Objectives of the aid
 
  Various studies have indicated that Flemish enterprises did not invest enough in training for 
their employees.  The Flemish government created the instrument of the training cheques in order to 
stimulate enterprises to pay for the training c ourses from recognised and screened providers of 
training. 
 (d) Time frame
 
  The system was initially set up for a period of 3 years but has been prolonged indefinitely. 
 
 However, as the scheme is based upon the EU regulations No. 68 and 69/2001 – de minimis 
aid and training aid – which are valid until 31 Dece mber 2006, the scheme will have to be reinforced 
in 2007, when new or revised EU regulations come into force.   G/SCM/N/123/EEC/Add.2 
 Page 63 
 
 
 4.8 AD HOC TRAINING AID  
 
 The Flemish government decided to grant some enterprises an ad hoc training aid, based upon EU Regulation No. 68/2001 of 12 January 2001 (OJ of 13/1/2001, L 10).  As provided in Article 5 of 
that regulation, individual cases have to be notifie d to the EU Commission if the amount of aid would 
be more than EUR 1 million.  Besides those big ad hoc training programmes, there were also a 
number of smaller ad hoc training cases, which did not pass the threshold of EUR 1 million.  A. OPEL Antwerpen
 
 
 Ad Hoc training aid programme, notified to, and approved by the EU Commission.  In 2004, 
EUR 8,787,757.00 was granted to Opel.  B. VOLVO Gent
 
 
 Ad Hoc training aid programme, notified to, and approved by the EU Commission.  In 2004, 
EUR 3,909,900.00 was granted to Volvo.   C. Number of ad hoc cases bellow 1.000.000 Euro threshold
 
 
• Continental Teves   EUR 245,327.6 
• Inalfa     EUR 148,699.20 
• VDL Jonckheere Bus   EUR 52,285.20 
• CNH Belgium    EUR 439,366.00 
• New Holland Tractor   EUR 133,096.50 
• Corus Aluminium   EUR 59,000.10 
• Hansen     EUR 596,874.00 
• LVD Company    EUR 595,077.00 
• Interbrew    EUR 333,151.66 
• Pauwels Trafo    EUR 990,777.00 
 
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